Functional relationships between the Lagrange multiplier and system parameters for multi-item inventory systems with one restriction are identified and used to establish tight bounds on the optimal multiplier value. A recursive process which rapidly converges to the optimal multiplier is also discussed. Finally, a comparative analysis of the new bounds in relation to existing bounds is presented.
All Science Journal Classification (ASJC) codes
- Management Science and Operations Research
- Industrial and Manufacturing Engineering
- Applied Mathematics